 "US job growth slows to 139,000 in May as Trump trade policies stir uncertainty")
US employers added 139,000 jobs in May, a slowdown from the revised 147,000 in April, as businesses grappled with economic uncertainty triggered by President Donald Trump’s trade and fiscal policies.
While job gains outpaced economists’ expectations of 130,000, the Labor Department report released Friday also included downward revisions for March and April that erased a combined 95,000 jobs from previously reported totals.
The unemployment rate held steady at 4.2% for a third straight month. However, the stability masked deeper concerns: more than 625,000 people dropped out of the labor force, a sign that many Americans may be losing confidence in the job market. Consumer surveys also show growing pessimism about the ease of finding work if laid off.
Hiring varied widely across sectors. Healthcare led with 62,000 new jobs, followed by bars and restaurants with 30,000. But the federal government shed 22,000 jobs—the steepest decline since November 2020—as Trump’s job cuts and hiring freeze took effect. Factories, already strained by trade uncertainty, lost 8,000 positions.
Trump’s unpredictable approach to trade—including shifting stances on tariffs—has made long-term planning difficult for businesses, economists say. Further uncertainty comes from Republican infighting over Trump’s tax-cut and spending bill, with prominent opposition from within the Senate and from billionaire Elon Musk.
Still, average hourly earnings rose 0.4% from April and were up 3.9% year-on-year, slightly stronger than expected.
Economists say President Donald Trump’s flip-flopping on import tariffs has hampered businesses’ ability to plan ahead and hire more workers. Opposition to Trump’s tax-cut and spending bill from conservative Republicans in the U.S. Senate and tech billionaire Elon Musk has added another layer of uncertainty for companies.
Impact Shorts
More ShortsEmployment gains continued to be concentrated in the healthcare sector, which added 62,000 jobs that were spread across hospitals, ambulatory services and skilled nursing care facilities. Leisure and hospitality payrolls increased by 48,000, mostly driven by hiring at restaurants and bars.
Social assistance employment rose by 16,000 positions. But federal government payrolls decreased by 22,000 and are down 59,000 since January amid an unprecedented campaign by the White House to drastically reduce the government’s footprint. The mass firings have been blocked by a federal judge. Reinstated workers who have been put on paid leave are counted as employed. The same applies to those who have accepted buyout offers.
Much of the job growth this year reflects worker hoarding by businesses, anchoring the labor market and economy through higher wages. Average hourly earnings increased 0.4% after gaining 0.2% in April. In the 12 months through May, wages rose 3.9%, matching April’s advance.
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
